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USD Fluctuates Ahead of Donald Trump's Presidency

January 6, 2017 at 9:14by K. Prabhu

It was a good idea to close long positions on the US dollar with profit taking. So, traders who yesterday decided to convert their funds from the greenback to other assets came out on top. The US dollar index significantly corrected its position to 101.80 off its multi-year highs. Yesterday, the bulls tried to return to the market, but the ADP employment data discouraged them from opening of long orders on the US dollar. Yesterday, the Labor Department released a report showing that the US employment growth slowed down in December. Obviously, the job market has already reached its full employment. Analysts had forecasted that the number of people who found work in December will be lower than in November, but the actual number was much lower than expected.

According to the research of the ADP experts, which takes into account private American companies, the number of unemployed people rose by 153,000 in December. Analysts had expected the number to go up by 170,000. The intention of the traders to buy the US dollar considerably weakened at the early Thursday session, as market participants studied the content of the minutes of the FOMC meeting. Analyzing the documents, they noticed that some of the US central bank officials are concerned about the uncertainties in policy of Donald Trump's administration. Thus, the same person caused the recent surge and the current depreciation of the US dollar.